Your Boss Would Like You to Evaluate a Project Which

Your boss would like you to evaluate a project which requires $164,000 in external financing. The flotation cost of equity is 12 percent and the flotation cost of debt is 5 percent. You wish to maintain
A debt-equity ratio of .55. What is the initial cost of the project including the flotation costs?

A) $177,226
B) $178,552
C) $179,606
D) $180,337
E) $181,248